DevenPHello All, I was employed with an organization on a contract basis/ fixed-term employment and have worked with them for the tenure of 2 years and 3 months. Each year my contract was been renewed. I had gratuity as a component in my CTC so as I have been reading and watching about the new gratuity Act the contract employee will be eligible for gratuity n all before 5 years. My only question is as I was working as Fixed-term employment till March 25, 2022. So will I be eligible for gratuity? If yes then how should I Claim it because my employer is denying and referring to the old gratuity code of 5 years minimum employment?
So is the new gratuity Act implemented wherein the fixed-term employees can get gratuity on prorated basis after completing 1 year?
I am from Maharashtra.
From India, Mumbai
Madhu.T.KYou should complete 5 years to claim gratuity. The law allowing gratuity to those who are employed for fixed term for a period of less than 5 years has not been enforced till now. Once enforced, those who have to leave the company due to non renewal of contract will be eligible to gratuity even if the total service is less than five years. The important thing to be noted is that this eligibility is not available to all employees on fixed term contract but is available only when the employee on fixed term contract has to leave following non renewal of his contract and not that he can demand it when he resigns and go.
From India, Kannur